In late February, the United States terminated two aid initiatives in Cambodia aimed at advancing child literacy and enhancing nutrition and development for children under five. Shortly after, China’s aid agency revealed plans to fund programs with similar objectives.
At a related event, China’s ambassador to Cambodia, Wang Wenbin, emphasized the importance of children’s growth in the nation’s future, alongside Cambodia’s health minister and a UNICEF representative. The Chinese financial commitment was not specified, but insiders familiar with the U.S. projects mentioned that China’s funding would cover initiatives akin to those discontinued due to the Trump administration’s reduction of USAID.
These U.S. projects had focused on promoting “inclusive education” and supporting “the most vulnerable children.” They provided educational materials, improved sanitation facilities, and aimed to enhance the wellbeing of families, newborns, and children with disabilities. The financial investment for these U.S. programs amounted to $40 million, which, despite being a minor fraction of the $27.7 billion saved by the Trump administration via cutting numerous aid projects, was significant for Cambodia, given its GDP size comparable to Vermont’s.
The State Department, responsible for overseeing USAID possibly through a merger, stated that U.S. aid programs were enhancing American prosperity and security. They further noted the U.S.’s longstanding cooperation with Cambodia over 30 years to support its development and expressed hope for a continued mature relationship between the two nations despite changes in U.S. foreign assistance policies.
The aid projects were terminated on February 26 following a broad restructuring of U.S. foreign assistance led by President Donald Trump and his adviser Elon Musk, which included dismantling USAID. Such actions have stirred concerns among some U.S. lawmakers and aid advocates that China might leverage these gaps to gain influence, particularly in areas where Washington and Beijing vie for dominance.
This development is notable in Cambodia, a nation where the U.S. has invested approximately $1 billion since the 1990s. The Biden administration has raised issues regarding China’s military presence at Cambodia’s Ream Naval Base. More recently, however, the U.S. has taken steps to fortify defense ties with Phnom Penh, granting an American warship access to Ream for the first time in recent years.
Charles Kenny, a senior fellow at the Center for Global Development, described the situation as a “diplomatic gift” to China. He explained that with USAID cuts, any small investments by China in health and education are perceived as public relation gains.
Amidst the Trump administration’s move to shut down USAID and curtail most aid contracts, there have been warnings about the geopolitical implications of reduced U.S. foreign aid. Experts fear that China, already active via its Belt and Road Initiative, would further its influence in developing regions, having made commitments in places like Cambodia, Rwanda, and potentially Nepal.
Will Parks, UNICEF’s representative in Cambodia, confirmed a partnership with China initiated in 2024, following a proposal from 2022. This agreement complements existing international funding, even as Parks cautioned about the risks of reduced aid to Cambodia’s achievements over the past decade.
The Cambodian government emphasized its strategy of diversifying partnerships. Government spokesman Pen Bona stressed the importance of finding new partners when others withdraw support. China’s Foreign Ministry reiterated its commitment to assisting Cambodia’s development within the framework of South-South cooperation, asserting its aid policy of non-interference and clear principles.
In a recent session on Capitol Hill, Pete Marocco, a Trump appointee who led the USAID changes, was questioned about Cambodia’s projects and China’s rapid response. According to an insider, Marocco dismissed concerns about China’s growing influence. Despite criticisms that canceled U.S. projects lacked direct American benefits, Diana Putman, a former USAID official, underscored the importance of foreign assistance in enhancing U.S. ambassadors’ diplomatic leverage, particularly in the Global South.
